Summary
Highway Infrastructure Limited - Q3 FY26 Earnings Call Summary Monday, February 9, 2026 11:00 AM
Event Participants
Executives 4 Anoop Agrawal (WTD & CFO), Arun Kumar Jain (MD), Riddharth Jain (Director & CEO), Saurabh Mittal (Joint CFO)
Analysts 7 Abhishek Sharma (Sapphire Capital), Aditya (AYZ Investments), Ajit (ULJK Financial Services), Akansha (Individual Investor), Amit Chaudhuri (Individual Investor), Amit Kumar (Individual Investor), Anjali Singh (Bansal Family Office), Sucrit Patil (Eyesight Fintrade)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income (Consolidated) | ₹365.2 crores | For 9M FY26; represents absolute growth as part of the strongest growth phase. |
| Total Income (Standalone) | ₹129.4 crores | +11.6% YoY for Q3 FY26; 9M FY26 up +18.3% YoY to ₹353.4 crores. |
| EBITDA (Standalone) | ₹9.6 crores | +52.7% YoY for Q3 FY26; 9M FY26 up +136.9% YoY to ₹36.3 crores on higher-value mandates. |
| PAT (Consolidated) | ₹6.3 crores | +34.3% YoY for Q3 FY26; 9M FY26 up +121.5% YoY to ₹23.1 crores. |
| Order Book (Consolidated) | ₹1,160 crores | +181% since Sep 2025; highest in history, comprising ₹623.6 cr EPC and ₹536.5 cr Tollway. |
| EPC Order Book | ₹623.6 crores | Target completion of ₹400-450 crores over the next two years for execution visibility. |
| Tollway Order Book | ₹536.5 crores | Driven by record ₹328.8 crores Kaza Fee Plaza mandate and ₹437.3 crores new orders. |
| EBITDA Margin | 6.0% - 7.0% | Management targets 200-300 bps expansion as contract values scale and competition thins. |
| Cash Flow Mix | 77% Government | High share of government clients ensures predictable payments and cash flow security. |
Geographic & Segment Commentary
- EPC Infrastructure: The execution backbone with 30+ years of experience and 105+ completed projects. Management targets ₹700 crores revenue from this segment in FY27, focusing on highway, bridge, and irrigation projects.
- Tollway Collection: An asset-light, technology-enabled vertical focused on leakage control and high throughput. Strategy involves geographic balancing (e.g., South/Coastal vs. North) to mitigate seasonal traffic risks like fog and landslides.
- Real Estate & Commercial: A smaller but strategic segment providing recurring annuity-style income through commercial leasing and hospitality. Management plans to leverage existing land banks to develop high-yield assets in the wedding and leisure sectors.
Company-Specific & Strategic Commentary
- Technology Integration: Deployment of proprietary software and reduced manpower to minimize leakages and monitor violations in real-time.
- Asset-Light Scaling: Shift toward public-funded tolling mandates (NHAI) rather than capital-intensive BOT models to improve capital efficiency.
- Ancillary Services: Expansion into wayside amenities, warehousing, fuel stations, and EV charging at toll plazas to enhance the mobility ecosystem.
- Structural Diversification: Intentional entry into new geographies (Gujarat, North-East) and verticals like Renewable EPC and Ropeway operations.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue | ₹1,000 crores by FY27 | Split: ₹700 cr from EPC and ₹300 cr from Toll/Real Estate; driven by execution of current record order book. |
| Order Book Growth | +50% in FY27 | Focus on “objectively selecting” higher-margin projects rather than just volume. |
| EBITDA Margin | +200-300 bps expansion | Expected as the company moves into higher-value contracts with fewer eligible bidders. |
| Specific Project Revenue | ₹30-31 crores/month | Expected collection from the Kaza Fee Plaza (Andhra Pradesh) starting in Q1 FY27. |
Risks & Constraints
| Risk | Context |
|---|---|
| Seasonality & Weather | Monsoons in North-East and winter fog in North India impact traffic volumes; mitigated by geographic diversification into South and Coastal regions. |
| Concentration Risk | Historically focused on Madhya Pradesh; management is actively bidding in Gujarat, Rajasthan, and Kerala to broaden the addressable market. |
| Execution Timelines | EPC working capital cycle is 3 months; scaling the order book necessitates disciplined site management to protect margins. |
Q&A Highlights
Business Model Differentiation
- Question: How does the business differ from companies like IRB? (Ajit)
- Answer: IRB focuses on capital-intensive BOT (Build-Operate-Transfer) models; Highway Infrastructure focuses on public-funded OMT (Operate-Maintain-Transfer) which is asset-light as construction is government-funded (Riddharth Jain).
Technology & Leakage
- Question: What differentiates your technology-driven toll operations? (Anjali Singh)
- Answer: Use of proprietary software and real-time cross-monitoring between the site and Head Office to reduce leakages; strategy involves hiring local staff to reduce costs while maintaining senior managerial oversight (Riddharth Jain).
Revenue Conversion
- Question: How much of the ₹1,160 crore order book is executable in FY27? (Yash)
- Answer: Approximately ₹750-800 crores is executable, including ₹550 crores of toll orders (typically 1-year cycles) and ₹250 crores of EPC work (Saurabh Mittal).
Future Growth Drivers
- Question: Is the Multi-Lane Free-Flow (MLFF) system a threat? (Yash)
- Answer: No, it is a benefit; faster throughput attracts more traffic and reduces manpower costs at plazas, improving overall margins (Riddharth Jain).
Key Takeaway
Highway Infrastructure Limited delivered a transformative Q3 FY26, marked by its largest-ever consolidated order book of ₹1,160 crores—a 181% increase since September 2025. Standalone PAT grew 38% YoY to ₹6.1 crores, while 9M FY26 PAT surged 192% to ₹22.9 crores, reflecting the successful scaling of its asset-light tolling vertical. The company successfully secured the ₹328.8 crore Kaza Fee Plaza mandate, which is expected to generate average daily collections of ₹1 crore. Strategically, the firm is diversifying beyond its Madhya Pradesh stronghold into Gujarat and the North-East, while exploring adjacencies in renewable EPC and commercial leasing to build recurring revenue streams. Management has provided a robust revenue guidance of ₹1,000 crores for FY27, supported by a ₹3.1 lakh crore government allocation for highways and a shift toward public-funded tolling models. The outlook remains positive as the company transitions into higher-value contracts where reduced competition is expected to drive a 200-300 bps margin expansion.
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